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The Labour Theory of Value FAQ

An FAQ for the labour theory of value, separate from normative judgments about whether it should be used in economics, actually exists, and I didn't even know until today. Whoops. I will have to read this whole thing, and you should too! [1]

It hits off with a basic factual description and then launches into labour value's relationship to use value and exchange value. Before long we get measurement, exploitation, the transformation problem and suggested further reading.

Do read the links in the order in which they appear please. Finding the right comments in the third link might be quite interesting. They are all by a user called BestTrousers and start with "RI" meaning R1.

The main argument used by HealthcareEconomist3 is to give a survey of several works, while BestTrousers goes for comparative advantage.

Hopefully you good folks can indulge me by forgiving this post. It is an unfinished mess because I wanted it out there as the anchor for a hyperlink from a Reddit thread.At the momebt everything below is a jumble of notes, but I will be reworking it bit by bit starting today.Hopefully this post will be sorted out and typed in full before the end of April 2017.

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Historical materialism is the idea that history progresses in stages - slavery, then feudalism, then capitalism, then socialism, then communism - driven by changes in the technologies or techniques of production, and that any human civilisation will exemplify this process.

This makes historical materialism an exercise in both historicism and materialism.

Historicism is the idea that studying the past can reveal history's in-built course or narrative, and so show you the future.

Materialism is the idea that ideas ( and institutions) ultimately* don't matter in determining our destinies, and that therefore only material…

The idea that labor exploits capital is equally as plausible, sans assumptions*, as the idea that capital exploits labor. This is only intended as a response to the formal concept, descriptive or normative, of exploitation in Marx's schema from Capital Volume I.

* Assumptions include the power relation whereby capital is just assumed to be above labor hierarchically.

~ ~ Capital exploits labor because...
... Capital earns income from production done by labor that capital didn't perform
& ~ Labor exploits Capital because...
... Labor earns income from capital that labor didn't buy~
Basically in good old formal logic fashion both of those cases above, being factual descriptions, are true at once or are false at once.